Fs n were part of a N

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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3)
You are given the following time line;
CFs are at the end of the year.
Years:
1
2
3
4
CF $s
(10,000.00)
1500
1500
3000
4500
5000
Rate:
12.00%
a)
Calculate the PV of the CFs
b)
If the CFs in this problem were part of a Net Present Value (NPV) calculation, what would be the
NPV of this calculation?
c)
What is the IRR of the CFs?
Transcribed Image Text:3) You are given the following time line; CFs are at the end of the year. Years: 1 2 3 4 CF $s (10,000.00) 1500 1500 3000 4500 5000 Rate: 12.00% a) Calculate the PV of the CFs b) If the CFs in this problem were part of a Net Present Value (NPV) calculation, what would be the NPV of this calculation? c) What is the IRR of the CFs?
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